Overnight there was the Australian Interest Rate Decision. The rate remain unchanged at 0.1% which has been seen as dovish. In other words the RBA believes they still need to keep interest rates very low in order to support the economy. This is opposite to the UK where the BoE is expected to raise interest rates again on Thursday this week. Initially there was a jump in the GBP/AUD rate but this has been given back already.
House prices remain rampant in the UK with Nationwide issuing their numbers at breakfast this morning. Analysts had expected a 10.8% growth but actually came in at 11.2%. This will have been spread across the UK with some parts way up whilst other areas would have been cooler.
The GBP/EUR rate has come off the boil somewhat in the last 24 hours as yet another retest of breaking out failed. The Sue Gray report has been received relatively mixed which will have contributed to this. Whilst the tone of the report was somewhat damning it's not looking at this stage that it's going to have the sweeping affect on No. 10 that some have been asking for.
Don't expect fireworks from the GBP/EUR rate in the next 48 hours unless a geopolitical story breaks. All eyes will be on Super Thursday when both the UK and Europe announces massive data.
The GBP/USD rate has been perking up in the last 24 hours although still remains relatively mid range on the longer term outlook.
China continues to celebrate their New Year today so the Yuan remains in descent.
As ever we look forward to keeping you in the loop and look out for our next update.
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Today’s Economic Calendar
EUR: 10:00 unemployment Rate
US: 15:00 manufacturing Data
OPEC: Wednesday 09:00 Meeting
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